EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Rallies Again After Jobs Number

EUR/USD Technical Analysis

The euro has plummeted after the jobs number came out hotter than anticipated, with the Americans adding 265,000 jobs last month instead of the expected 165,000. Because of this, traders of course are starting to think that the Federal Reserve is going to be on pause for even longer, which is not a huge surprise.

And now that we have broken through the 1.03 level again, we are really starting to look at a very possible move down to parity. Short-term rallies continue to be selling opportunities, and in this environment I just have no interest whatsoever in trying to get long of this market.

USD/JPY Technical Analysis

The US dollar has shot higher against the Japanese yen, as you would expect, mainly due to the interest rate differential and of course, rates in America did shoot up immediately. We’ll have to see whether or not that sticks, but at this point, I think it’s pretty obvious that the direction in this pair is higher.

If we can clear the 159 yen level, that should open up more US dollar strength. Short-term pullbacks, I think, will continue to see a lot of support at the 158 yen level, which of course is a very important level as it previously was so significantly resistant, you would have to assume that there is support there still.

AUD/USD Technical Analysis

The Australian dollar is falling straight through the floor as it has been one of the weaker performers anyway. So, it’s not a huge surprise to see how it’s behaving. With that being said, I think you’ve got a scenario where you are looking at the Aussie dollar as one that you short every time it rallies pretty much the same as anything against the US dollar right now, with the 0.62 level, of course, being a major resistance barrier at this point.

I do believe that the Australian dollar eventually gets to the 0.60 level and as long as it is tethered to China, which of course, it will always be, it is going to struggle considering that Chinese economic numbers and more specifically, the bond market in mainland China, look very ugly indeed.

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